CSR Procurement Policies and Guidelines

As of November 1, 2015

CSR Procurement

The Denka Group recognizes that all of its suppliers are essential partners in its pursuit of initiatives aimed at fulfilling its social responsibilities. In line with this recognition, the Group works hand in hand with its supply chain to promote CSR procurement while clarifying its approach and standards through the CSR Procurement Policies and CSR Procurement Guidelines that it formulated based on the Denka Group Guidelines. In fiscal 2014, we sent out questionnaires with regard to our CSR Procurement Guidelines to key suppliers representing 70% of our raw material supply chain in terms of transaction value. As of June 2015, we had heard back from half those queried, and all respondents expressed approval of Denka’s CSR Procurement Policies and Guidelines.
Going forward, we will conduct a detailed analysis of the survey results while engaging in dialogue with those who have yet to reply in order to identify upcoming challenges and thus determine countermeasures to be implemented.
In these ways, we will step up CSR activities by encouraging the involvement of suppliers in CSR procurement.

The CSR Procurement Policies

We will maintain respect for human rights while striving to improve the workplace environment and occupational safety and health.

We will pursue environment-conscious procurement, striving to secure safety and to reduce our impact on the earth’s environment.

We will undertake procurement activities based on compliance with relevant laws, regulations and corporate ethics.

We will purchase raw materials and equipment and consign construction work by comprehensively taking into account such factors as quality, prices and delivery time as well as suppliers’ technological capabilities, supply reliability and environmental conservation initiatives.

We will sincerely engage with our suppliers and treat them as important business partners, fostering mutual understanding and trustworthy relationships with them through fair business transactions.

We will not accept from our suppliers nor provide them with any gifts or entertainment of value that are deemed in excess of social norms or of an inappropriate nature.

We will not divulge any non-public information acquired in confidence from our suppliers in the course of procurement activities while properly managing and protecting their intellectual property rights.

We will maintain an equal partnership with all suppliers and provide them with equal opportunities for competition in a fair manner.

The CSR Procurement Guidelines

1. Respect for Human Rights and Occupational Safety and Health:

A supplier is required to include respect for fundamental human rights and the pursuit of occupational safety and health in its corporate policy.

2. Compliance with Laws and Regulations:

A supplier is required to include compliance with law and regulations, as well as fair corporate activities in accordance with social ethics, in its corporate policy.

3. CSR Promotion:

A supplier is required to recognize CSR as being integral to its business activities. This entails including sustainable social and business development in its corporate policy and establishing an in-house CSR promotion structure.

4. Environmental Conservation:

A supplier is required to include environmental conservation activities in its corporate policy and disclose the status of said activities to the general public. The said activities include the appropriate management of chemical substances contained in its products and green procurement.

5. Product Quality and Safety:

A supplier is required to include quality and safety assurance in its corporate policy. Such activities are expected to take place under an established product quality management system.

6. Fair and Just Business Transactions:

A supplier is required to include fair and just business transactions in its corporate policy.

7. Risk Management:

A supplier is required to make sure that any risk or contingencies it may confront are managed and controlled through such means as the appropriate and timely information disclosure.

8. Contribution to Society:

A supplier is required to include proactive contribution to local communities and global society in its corporate policy.

9. Severing Ties with Antisocial Forces:

A supplier is required to not have any relationship with antisocial forces, whether they are individuals or entities.